The carmaker has already rumoured that the next generation Range Rover, which will be based on a modified version of the XJ’s light weight aluminium chassis, will feature a hybrid version capable of driving off road.

Jaguar’s approach has been to showcase its performance attributes, claimed to offer a 70% reduction in CO2 emissions with no loss in performance. The XJ_e offers 329bhp from a combination of the 2.0-litre four-cylinder turbo engine from an Evoque and an electric motor, accelerating to 62mph in under 6.5 seconds on the way to a 150mph top speed.

The powertrain can also shift automatically between fully electric, petrol-only and hybrid power for the best efficiency, offering a 25-mile electric range, returns 87mpg and emits less than 75g/km CO2. Its hybrid components are developed in the UK, with Dundee-based Axeon supplying the battery and EVO Electric of Surrey providing the motor/generator.

Bob Joyce, engineering director, JLR, explained: ‘The XJ_e investigates how a 5.0-litre V8 engine could be replaced by an advanced 2.0-litre hybrid powertrain to deliver similar performance and refinement, but with CO2 emissions of less than 75g/km. While the XJ_e is an experimental project, it highlights that JLR customers can expect some exciting low-carbon products in the future.’

The project is part-funded by the UK Government’s Technology Strategy Board, thorugh its REEVolution project. This is aimed at creating a UK-based supply chain for electric and hybrid vehicles, and partners include JLR, Lotus and Nissan, working for Infiniti.

JLR has yet to reveal whether it will launch a hybrid Range Rover or XJ first, but has said the former will not use plug-in technology.